Mick Borwell Environmental Issues Director
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1 Mick Borwell Environmental Issues Director
2 Formerly UKOOA Membership Organisation Operators and Contractors Upstream (oil and gas exploration and terminals) Purpose To strengthen the long term health of the offshore oil and gas industry in the UK
3 Importance of oil and gas from the UKCS Companies shareholders pension funds UK Taxation Tax rates 50 75% depending on field 7 billion paid in 2009 (20% of all UK corporation tax) 5 billion paid by supply chain Employment 34,000 direct 230,000 supply chain 89,000 induced
4 Importance of oil and gas from the UKCS Security of Supply Oil and gas constitutes more than 75% of UK primary energy demand UKCS provides 97% oil demand and 73% gas demand In 2020 oil and gas will still provide 70% of UK primary energy demand even if the 20% renewables target met UKCS could provide 40% of UK demand in billion boe already produced billion boe remaining Current contribution to UK balance of payments is billion
5 The Oil Spill Prevention And Response Advisory Group
6 Implications of the Macondo Incident for the UK Perception of Risk Comprehensive Review OSPRAG Priorities
7 UKCS Response: Creation of OSPRAG Created 25 May; first meeting 2 June Precedent Helicopter Task Group Objectives: Review UKCS regulation and arrangements for pollution prevention and response Assess the adequacy of financial provisions for UKCS response Monitor and review findings from the Deepwater Horizon incident and facilitate implementation of pertinent recommendations Establish active liaison with European and international regulatory, technical and industry bodies in order to share information and learning
8 OSPRAG Steering Group Composition
9 OSPRAG Group Structure OSPRAG* Technical Review Group Oil Spill & Emergency Response Insurance & Indemnities EU Issues Well Capping & Containment Well examination, Verification and Primary Well Control Competency & Behaviours BOP Inventory & Improvements Sensitivity & Protection Mapping Oil Pollution Emergency Plans Review of Physical Response Capability Spill Scenarios & Modelling *OSPRAG Members Offshore Operators Drilling Contractors DECC HSE MCA & SOSREP Offshore Trade Unions OGP Flowing Well Status IADC Oil & Gas UK
10 Initial Work Streams Technical Review Group Well capping and containment Well examination, verification, primary well control BOP inventory Competency, behaviours and human factors Flowing well status
11 Initial Work Streams Oil Spill Response Review Group Oil Pollution Emergency Plans Counter Pollution Strategy Sensitivity and Protection Mapping Clean up and restoration protocols Exercise
12 Initial Work Streams Indemnity and Insurance Review Group Financial and administrative currently in place Future requirements Adequacy of the OPOL levels Operators Cooperative Emergency Services
13 Initial Work Streams European Issues Coordinating OSPRAG activities with other initiatives European National Oil Industry Associations OGP Global Industry Response Group IPIECA API
14 Intended Outcomes Demonstrably effective primary, secondary and tertiary well control Oil spill response strategy and capability that are robust, justifiable and sustainable Robust financial and cooperative mechanisms
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